Kaiser Permanente Ventures and Mayo Clinic Invest in Enterprise IoT Security Firm
Santa Clara, Calif-based Ordr has announced additional funding to the Series B funding round announced in December 2019. The amount of the latest funding is not disclosed, but the company confirms that the total raised is now $50 million.
With a Series A round of $16.5 million in March 2019, and a Series B round of $27.5 million in December 2019, the implication is that this Series B top-up is for a further $6 million, raised from Mayo Clinic and Kaiser Permanente Ventures.
Ordr was founded in 2015 by Pandian Gnanaprakasam (CPO) and Sheausong Yang (chief scientist) to provide security for the rapidly expanding IoT ecosphere. Its System Control Software Engine uses machine learning to find and classify every IoT and unmanaged device in the environment, to map all communications, to detect and prioritize vulnerabilities, and then to secure each device through policy generation and segmentation. Organizations use Ordr to find their devices, track their usage, and achieve proactive protection and compliance.
Propelled by the rapid adoption of business transformation (the fourth industrial revolution) the size of the IoT market is growing fast. According to the IoT Security Market report from Markets and Markets, IoT security will be worth $35.2 billion by 2023 — up from $8.2 billion in 2018 (a compound annual growth rate of 33.7%).
Gartner suggests that the number of IoT devices used by enterprises and the automotive industry is increasing by just more than 20% per year. It was expected to reach 4.8 billion endpoints in use by the end of 2019, and to grow to 5.8 billion by the end of 2020.
But IoT security is generally lagging behind IoT adoption. “It’s becoming increasingly critical that enterprises properly protect network-connected devices, and the network itself, from potentially nefarious activity,” says Greg Murphy, CEO of Ordr. “For far too long, organizations have been in a reactive mode, using tools that provide only basic visibility, responding to device vulnerabilities as they are discovered. In our view, enterprises must be proactive, ensuring that their most mission-critical assets and business functions are always protected.”